401(k) Savings Plan
VMware’s 401(k) Savings Plan helps you set aside money for the future to help you meet your retirement goals.
Start Saving as Soon as Possible
You are immediately eligible to enroll in the company-sponsored 401(k) program, managed by Fidelity Investments. New hires to VMware will be automatically enrolled in the plan at 6%, approximately 30 days after your hire date; Rehires must actively enroll to participate. You can either invest in a pretax 401(k), Roth 401(k) or on an after-tax basis. You may contribute amounts up to IRS and plan limits, as follows:
401(k) Savings Plan Details
|Pretax 401(k) Contributions||Roth Contributions||After-Tax Contributions||Employer Match|
|Are contributions taxed when made?||No||Yes||Yes||No|
|Are contributions taxed when distributed?||Yes||No1||No2||Yes|
|Are earnings taxed when distributed?||Yes||No1||Yes2||Yes|
|What are the IRS Annual limits?||$19,500 for 2020 for employee pretax and Roth contributions.||$57,000 for 2020, including employee pretax, Roth, after-tax and Employer Match|
|What is the Catch-up contribution for age 50 and older?||An additional $6,500 for 2020|
|A catch‐up contribution may be made on a pretax or Roth basis and is in addition to both the pretax and Roth $19,500 Annual Limit, as well as the $57,000 Annual Additions limit, which applies to the total contributions made to your 401(k) across pretax, Roth, after‐tax|
1 A distribution from a Roth 401(k) is tax‐free and penalty‐free, provided the five‐year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability, or death.
2 A partial distribution from a qualified plan must include a proportional share of the pretax and after‐tax amounts in the account. Therefore, while the portion of your distribution associated with your after‐tax contribution is not taxable, the portion of your distribution associated with any pretax contributions or earnings on pretax or after‐tax contributions is taxable.
You can contribute from 1% to 90% of your pay up to IRS limits. You can update your contributions at any time on the Fidelity website. Changes usually take 1-2 pay periods before showing up on your paycheck.
VMware provides a dollar-for-dollar match up to 6% of your eligible compensation. The quarterly maximum for the match is $2,250. You are immediately vested in your contribution as well as VMware’s matching contributions. In order to receive the Company match, you will need to defer pre-tax or via Roth 401(k) contributions. After-tax contributions are not eligible for Company matching.
Effective July 1, 2020, we will suspend VMware’s company match to the 401(k) retirement plan. Employees will be able to continue making contributions to the 401(k) plan throughout the year with the overall contribution limits unchanged. VMware will continue to match 401(k) contributions up to a maximum of $2,250 per quarter through June 30, 2020. For additional information on this change to the company match, please refer to the FAQ document.
The 401(k) Savings Plan offers several choices of funds, ranging from money market accounts and bond funds to growth stock funds, including a brokerage option. You may allocate your contributions in any way you want among the available investment options and change them at any time. To manage your investments, log on to the Fidelity website.
Withdrawals & Loans
You may begin taking money from the plan any time after age 59½ or when you terminate employment. If you retire, you must begin receiving money from the plan no later than the 1st of April after the year in which you reach age 70½.
You may also be eligible to initiate a loan or hardship withdrawal on your account. For more information, call Fidelity Investments at 1-800-835-5095.
Naming a Beneficiary
When you enroll in the plan, you must name a beneficiary to receive your plan account balance in the event of your death. You can update your beneficiary at any time on the Fidelity website.
For more information on VMware’s 401(k) Savings Plan, please refer to the Summary Plan Description (SPD).
ASK HR [VMware network access required]
Phone: 1-888-VMWARE8, option ‘US Benefits’
Internal Phone: ext. 29200
Fidelity Roth In Plan Conversion FAQ [VMware network access required]